Order Acceptance and Scheduling in a Single-Machine Environment: Exact and Heuristic Algorithms

Abstract

In this paper, we develop exact and heuristic algorithms for the order acceptance and scheduling problem in a single-machine environment. We consider the case where a pool consisting of firm planned orders as well as potential orders is available from which an over-demanded company can select. The capacity available for processing the accepted orders is limited and orders are characterized by known processing times, delivery dates, revenues and the weight representing a penalty per unit-time delay beyond the delivery date promised to the customer. We prove the non-approximability of the problem and give two linear formulations that we solve with CPLEX. We devise two exact branch-and-bound procedures able to solve problem instances of practical dimensions. For the solution of large instances, we propose six heuristics. We provide a comparison and comments on the efficiency and quality of the results obtained using both the exact and heuristic algorithms, including the solution of the linear formulations using CPLEX.